If you would like to start over financially and own a house that you owe a lot on, you may wonder what your options are. There are several different options you have, and you could start by trying to sell your house. Selling a house can take time, but there is a chance you might at least be able to break even on the sale. If you are worried about this, talk to a real estate agent to determine how much you would need to sell it for to break even. Here are several factors that you should evaluate as you prepare to sell your home.
Find out exactly what you owe
The first step when selling a house is finding out how much you owe on it. Keep in mind, too, that interest accumulates daily, so what you owe in a few weeks might be slightly more than you owe today. Once you make your next house payment, the balance will then drop slightly. Knowing how much you owe is vital so you can determine how much you would need to sell it for to break even.
Ask the real estate agent about the commission
The commission on selling a house is usually around 6%, but you might be able to find an agent that will sell your house for a rate that is slightly lower than this. Once you know the rate, you will be able to determine approximately how much you would have to pay the agent once the house sells. You should add this amount to the amount you owe on the house to find an approximate selling price for your house.
For example, if you owe $150,000, you might be considering selling for around $165,000. If so, the commission at 6% would be $9,900. If you add these two amounts together, you would need to sell the house for at least $159,900 to break even.
Find out if there will be expenses
The other important thing to consider is expenses you will have to pay as the seller of the home. There are usually very few fees and expenses sellers must pay, but there may be a couple that you will have to pay. These are typically for inspections that must be completed before selling a house.
With this information, and with expert advice from a real estate agent, you will be able to find out if you can sell your house and at least break even on the sale.